In the Israeli village of Kfar Giladi, a rocket hit a group of Israeli reservists called up for the Lebanon offensive. Medics said, 12 were killed and dozens were wounded. Soldiers near the scene held their heads and one wept as a military ambulance pulled away. Helicopters landed nearby to fly the badly wounded to hospitals further from the war front.
"I don't recall so many dead ever. This is terrible," said Ron Valensi, head of the upper Galilee municipal council and a resident of Kfar Giladi, speaking on Channel 2 Television.
More Hizbollah rockets hit the northern Israeli city of Haifa, killing at least three people and wounding 65, medics said. A police commander told Israel Radio that a rocket slammed into two adjacent houses, causing them to partly collapse.
Several people were trapped in the rubble.
Lebanon's parliament speaker Nabih Berri said his country rejected the US-French draft Security Council resolution because it would let Israeli forces stay on Lebanese soil.
Berri, a politician who has been the main channel between Hizbollah and Prime Minister Fouad Siniora, said the draft ignored the Beirut government's seven-point plan calling for a ceasefire, the withdrawal of Israeli forces and the return of all displaced civilians among other things. "All of Lebanon rejects any resolution that is outside these seven points," Berri told a news conference.
Lebanon submitted an amendment to the Security Council calling for an Israeli withdrawal to be added to the resolution.
Hizbollah, backed by Syria and Iran, has killed 58 Israeli soldiers and 36 civilians in the conflict, sparked when its men seized two Israeli soldiers in a cross-border raid on July 12.
The Israeli army said on Sunday it had captured one of the Hizbollah fighters who took part in the seizure of the soldiers.
At least 759 people have been killed in Lebanon during the war, including 16 overnight and on Sunday in the bombing of five southern villages.
Two civilians died when an Israeli air strike hit a pickup truck ahead of a UN aid convoy heading for the southern city of Tyre, UN sources said. A Lebanese soldier was killed in an air raid near Tyre and another civilian in a strike inside it.
Hizbollah announced that three more of its fighters had been killed, bringing its declared toll of deaths to 52. Lebanese security sources estimate about 90 Hizbollah deaths in the war.
UN peacekeepers in south Lebanon said a mortar round fired by Hizbollah wounded three Chinese members of the force.
Hizbollah said its rocket attack on Haifa, using Raad 2 missiles, was a response to continued Israeli bombing, particularly the strikes on Beirut. Israel views the UN draft favourably, a senior government official and Israeli media said, noting that it allowed Israel to respond to Hizbollah attacks after a truce and did not order Israel to withdraw its 10,000 soldiers from southern Lebanon.
Israeli air strike killed one Palestinian in the Gaza strip on Sunday, bringing to at least 167 the number of Palestinians killed in the campaign, more than half of them civilians. In the West Bank city of Ramallah, Israeli forces detained Palestinian parliament speaker Aziz Dweik, a Hamas leader.